The bank said the declining global credit environment in 2001, which saw the highest number of defaults since 1991, had prompted its credit risk management strategy. The amount of losses attributed to UBS’s credit exposure dropped to Sfr375 million in 2001, compared with Sfr565 million in 2000.
The strategy of diversifying its risk exposure “positions UBS relatively well for any continued turbulence in the international credit markets”, the bank said. The bank also trimmed its corporate and institutional lending business, reducing its total lending by Sfr24.7 billion.
The week on Risk.net, July 14–20, 2017Receive this by email